Bankruptcy is a proceeding in which a court administers the estate (the property and other assets) of a debtor for the benefit of creditors.
Bankruptcy law contains different groups referred to as "Chapters". One Chapter in particular is a Chapter 7 Bankruptcy.
A Chapter 7 Bankruptcy may assist individuals, married couples, corporations and partnerships who are unable to pay their existing debts by discharging those debts. Once debts are discharged you will no longer be responsible for their payment.
The procedure starts with the filing in bankruptcy court of the official petition and a "Statement of Financial Affairs." This statement contains extensive schedules requiring a detailed list of all your debts, including: all priority debts (including taxes); all "secured" debts (including home mortgages and auto loans) that have property as "collateral"; and all unsecured debts of any kind.
Other information that must be provided on the Statement of Financial Affairs includes: the names and addresses of the creditors; a list of all assets, including real estate and all forms of personal property.
It is extremely important that the Statement of Financial Affairs be completed accurately. Debts that are not listed in the statement will not be discharged at the completion of the bankruptcy proceeding. Failing to list assets in an attempt to hide them from creditors may result in serious consequences, including the denial of discharge or charges of bankruptcy fraud.
Under a Chapter 7 Bankruptcy a trustee (appointed by the court) determines if you have any assets which may be seized for the benefit of your creditors and takes possession of your property that is not considered "exempt." Exempt property isn't available to pay the claims of creditors and you can keep it. Federal statutes and state laws determine what property is considered exempt. Property will be claimed as exempt in the schedules that are filed to initiate the case. If no objections are filed to the exemptions, they become final 30 days after the meeting of creditors. KOKOLAKIS & ASSOCIATES, P.C. will assist you by explaining what assets are exempt.
KOKOLAKIS & ASSOCIATES, P.C. offers free telephone consultations for new clients considering bankruptcy who cannot get to our office or simply telephone our office to schedule a free office initial bankruptcy consultation. Legal fees depend upon the complexity of your case, and we offer flexible payment plans. Retain this office with no money down, and we'll stop creditor harassment immediately.